Italy meets Arabia

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

Bank ABC (Arab Banking Corporation B.S.C) has closed a landmark EUR 24.9 million sustainability-linked credit facility for Saudi Paper Manufacturing Company (SPM), a leading listed manufacturer in the Kingdom.

The five-year financing, backed by the Italian Export Credit Agency (SACE), will support SPM’s ambitious expansion plans and marks a significant milestone for both companies.

The signing ceremony, held at Bank ABC’s Head Office in Bahrain on January 17, 2024, was attended by key executives from both sides.

Representing Bank ABC were Group Head of Wholesale Banking, Amr ElNokaly, and Group Head of Corporates, Michael Davis. SPM’s delegation included Board Member, Abdulaziz Raed Al Mashal, and CEO, Yousseri Abdul Hamid El-Bishry.

Green finance

This landmark deal marks Bank ABC’s first bilateral sustainability-linked ECA transaction globally, highlighting its commitment to green finance and supporting the region’s growing manufacturing sector. “We are delighted to have arranged this innovative credit facility for Saudi Paper,” said ElNokaly.

“The transaction underscores our dedication to sustainable financing and supporting SPM’s expansion through cutting-edge machinery. We are proud to be their banking partner on this journey.”

‘Continued success’

SPM expressed its gratitude to Bank ABC for its instrumental role in financing its latest major project (PM5). Al Mashal commended Bank ABC’s competitive rates and unwavering support, stating, “They have positioned us for continued success and strengthened our commitment to driving industrial growth in the Kingdom.

Their professionalism and efficiency throughout the process have been exemplary.

We are truly grateful for this strategic partnership and look forward to collaborating in future endeavours.” Davis acknowledged SPM’s trust and highlighted the innovative nature of the deal.

“This ECA-backed facility showcases how Bank ABC leverages its extensive network to deliver exceptional solutions for its clients,” he said. “We are proud to support Saudi Paper’s commitment to recycling and the circular economy.”

SACE, the Italian Export Credit Agency, played a crucial role in the transaction, demonstrating its commitment to supporting Italian companies like Toscotec, the supplier of the new machinery for SPM’s project.

‘Italian excellence’

“It was a pleasure working with Bank ABC on this strategic transaction,” said Antonio Bartolo, Regional Director of SACE.

“The paper industry is an Italian excellence, and SACE’s role is to help and support Italian companies in gaining recognition and generating additional business opportunities in strategic markets like Saudi Arabia.”

Alessandro Mennucci, CEO of Toscotec, expressed his company’s pleasure in supporting SPM as both technology supplier and facilitator of the credit facility deal.

“This is an important step towards the successful implementation of SPM’s expansion project,” he stated.

The €24.9 million loan will enable SPM to purchase stateof-the-art machinery from Toscotec, enhancing its operational efficiency and paving the way for future growth.

This landmark deal marks a significant collaboration between Bank ABC, SPM, SACE, and Toscotec, propelling the region’s manufacturing sector towards a more sustainable and prosperous future.